Analyst: 52% US households dual pay-TV/SVoD
May 2, 2018
According to the latest Market Snapshot: OTT and Pay TV: Partnerships and Competition, from research and consulting firm Parks Associates, which examines competition in the US entertainment marketplace as partnerships between pay-TV and OTT within the video space become more common, over half of broadband households have a combination of pay-TV and at least one OTT service.
In this Market Snapshot, the research firm explores partnership strategies between pay-TV operators and OTT providers, which can enhance the user experience while minimising the risks and marketing costs for each player.
“The nature of competition in video services has changed. Today, it is less about replacing competitors and more about how you complement others in the market,” said Brett Sappington, Senior Director of Research, Parks Associates. “Over one-half of broadband households have a combination of pay-TV and at least one OTT service. Consumers are willing to carry multiple video accounts to get the content they want. Often they will select a preferred service with the content that they can’t do without and then select other video services that complement the high priority option.”
According to Parks Associates, 11 per cent of US broadband households watch over-the-air broadcast TV channels via an antenna, and pay-TV service subscriptions fell from 87 per cent to 77 per cent between 2012 and 2017. The rise of OTT correlates to a decline in viewership for live, linear TV channels. In particular, the audience for over-the-air broadcasters has diminished over time, especially among younger heads of household.
Additional research includes:
- 52 per cent of US broadband households have a subscription to both pay-TV and one or more OTT video services.
- Approximately 33 per cent of Cord Cutters would have stayed with their service provider if offered a Netflix-style service bundled with broadcast TV channels.
- 5 per cent of US broadband households have never subscribed to a pay-TV service.
- 8 per cent of US broadband households have recently downgraded their pay-TV service and supplement viewing with video on an Internet-connected device.